N3.92tn fuel subsidy topples defence, health, education budgets

The N3.92tn paid as a subsidy on Premium Motor Spirit, also known as gasoline, between January 2020 and June 2022 is greater than the sum of the government budgets for health, education, and defence during the same thirty-month period.Infomation Guide Nigeria

In the past thirty months, Nigeria has spent more on fuel subsidies than on the health, defence, and education ministries combined.

An review of fuel subsidy expenditure and ministerial budgets from January 2020 to the first half of 2022 revealed that while the Federal Government spent N3.92tn to subsidise PMS during the time, its budgets for education, health, and defence were N2.28tn, N1.67tn, and N3.06tn, respectively.

This indicates that the government spent more on gasoline subsidies over a thirty-month period than the health, education, and defence sectors received during the same time frame.

Further study revealed that the overall budgets for health, education, and defence in 2020 totaled N1.922 trillion, while fuel subsidies alone consumed N450 trillion.

In contrast, the total expenditures for health, education, and defence were anticipated to be N2.288 trillion in 2021.

Other Top Stories:

During the first six months of this year, the government spent N2.04 trillion on fuel subsidies, while the combined budgets for health, education, and defence were N2.81 trillion.

Our correspondent was told by economists and oil and gas experts that the Nigerian fuel subsidy was having a devastating effect on education, health, and defence, and that they questioned whose interests it was serving.

They were uneasy about the continuing increase in Nigeria’s fuel subsidy in light of the country’s enormous debt and other economic difficulties.

They noted that the cost of fuel subsidies over the last two and a half years constituted a missed chance to invest in vital capital resources to improve the typical Nigerian’s literacy, standard of life, and safety.

“Nigeria’s fuel subsidy programme has continued to limit remittances to the Federal Account Allocation Committee by the Nigerian National Petroleum Company Limited for distribution to the Federal Government, states and local government areas,” the President, Petroleum Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, told our correspondent.

Analysts argue that a large number of Nigerians shoulder the costs of education, health care, and security through a variety of private arrangements, while the fuel subsidy provides no assistance.

They argued that a more incentivized workforce may be achieved in the health, education, and defence ministries by eliminating or reducing subsidies.

In addition, they stated that civil service compensation and the national minimum wage remained a contentious issue, as the ongoing strike by the Academic Staff Union of Universities highlighted the need to address and conclude the ongoing discussion regarding civil service compensation and incentives.Jamb Result

Recently, The PUNCH reported exclusively that the Nigerian Economic Summit Group has expressed alarm about an oncoming economic catastrophe in Nigeria as a result of the continuous increase in gasoline subsidy levels.

Check Jamb Result
Check and Confirm: How much is Dollar to Naira